Nagaland cuts taxes on petrol and diesel, fuel prices come down
Petrol and Diesel were being retailed at ₹90.41 and ₹83.99 in Kohima on Wednesday.
Nagaland has cut taxes on petrol and diesel and other motor spirits, bringing some relief to consumers as the retail price of petrol has come down to ₹90.41 a litre and ₹83.99 a litre for diesel on Wednesday. The state finance department said the tax rate for diesel has been reduced from ₹11.08 to ₹10.51 per liter or 17.50% to 16.50% per liter (whichever is higher) while the tax on petrol and other motor spirits has been reduced from ₹18.26 to ₹16.04 per liter or 29.80% to 25% per litre (whichever is higher). The reduction in fuel tax came into effect from February 22.
The price of petrol which was retailing at around ₹93.48 and diesel at ₹84.35 on February 21 in the state capital Kohima, before the tax cut, is being retailed at ₹90.41 and ₹83.99 on Wednesday respectively.
The prices of petrol and diesel have been on the rise for the last month due to increasing prices of crude oil in the international market on the back of rising demand and hope after the launch of coronavirus vaccines in several countries. Prices of petrol and diesel across the country are market-determined and attract uniform central excise duty, but their prices differ from state to state because of the wide variations in the local levies or value-added tax. The Central government levies ₹32.98 per litre of excise duty on petrol and ₹31.83 a litre on diesel. Central and state taxes make up for over 61% of the retail selling price of petrol and about 56% of diesel in most states.
Rising fuel prices have become a huge political issue in the country with the opposition targeting the government for not reducing Central taxes to bring relief to the common man. However, the Central government has termed the issue to be vexed given the need to generate revenues to meet budgetary targets after the slump due to coronavirus induced slowdown in the economy.
In some states, the price of petrol crossed ₹100 a litre due the current streak of rise in prices. The decision of the Nagaland government to cut fuel rates follows similar reductions in neighbouring states- Assam and Meghalaya.